March 18, 2009

House Votes to Reauthorizes Small Business Programs by Kathryn A. Wolfe, CQ Staff

The House Tuesday passed a bill to extend certain expiring small business programs through July 31.

Passed by voice vote, the bill (HR 1541) would reauthorize several Small Business Administration programs set to expire at the end of the week, including the Small Business Innovation Research program, which seeks to involve small high-tech businesses in federal research activities and help commercialize cutting-edge high-tech research.

Nydia M. Velazquez, D-N.Y., chairwoman of the House Small Business Committee, said the extension will give lawmakers time to work on a more extensive overhaul of SBA programs.

“Extending these programs is important but we must not lose sight of a larger goal. Later this Congress we will pass legislation to modernize the SBA and change the agency’s culture. In these difficult economic times we will need an SBA that can respond effectively. This will require extensive reforms,” she said.

David Wu, chairman of the House Science and Technology Subcommittee on Technology and Innovation, said the research program and others need an update.

“Moving forward if we are to continue realizing the full value of SBIR we must authorize them with changes that reflect the evolving innovation environment. It must be an innovation program as well as a jobs and small business program,” Wu said.

He noted that in particular lawmakers must find a way to resolve an issue that, in part, led to problems passing a standalone reauthorization last year: to what extent venture capital-backed high-tech firms should be able to participate in grant awards.

Small businesses not backed by venture capital have argued that allowing them access to grants would crowd out the very startup businesses the grant programs are intended to help flourish.

Beyond SBIR, the extension would reauthorize all SBA programs set to expire at the end of the week, including:

• the Federal and State Technology Partnership Program;

• the SBA’s gift acceptance and co-sponsorship authority;

• the Paul D. Coverdell Drug-Free Workplace Program;

• the HUBZone Program; and

• the National Women’s Business Council.

From: http://grants.nih.gov/grants/funding/sbirsttr_news.htm